Jefferies Keeps Buy Rating on Geely Auto with HK$32.80 Target Price

Deep News
Sep 27

Jefferies has released a research report maintaining a "Buy" rating on GEELY AUTO (00175) with a target price of HK$32.80.

Geely Auto held an AI intelligent charging technology day in Hangzhou, where the company linked its battery, charging, and infrastructure strategies. Key information includes 2.2-megawatt chargers, a 12C/6C battery roadmap, integrated thermal management and full lifecycle management solutions, as well as a target of 22,000 charging stations and 100,000 charging guns by 2027.

The bank believes the challenge has shifted from technology to execution, particularly regarding power module supply, available sites, and grid access.

The bank notes that Geely's 2.25-megawatt single-gun charger is the fastest in the industry, providing a platform for upcoming 12C models. The Shen Dun Golden Brick (12C) leads in establishing a halo effect ahead of premium Zeekr and Lynk & Co models, while the 6C ultra-short blade battery targets mainstream models such as the E5.

Currently, Geely operates over 2,500 stations and 12,000 charging guns, covering 232 cities. The 2027 target implies roughly a ninefold expansion of the network, to be advanced through an asset-light model.

Management stated that the cost of megawatt-level chargers is approximately 150,000 RMB per gun, compared to peer benchmarks of 240,000 to 400,000 RMB. More importantly, cost savings come from component integration rather than adopting lower-spec hardware.

The bank believes that as pure electric vehicle penetration exceeds 40%, the charging experience is replacing range as the next competitive battlefield. This launch effectively narrows one of Geely's remaining product shortcomings; if executed well, the impact should be reflected in the group-level pure electric vehicle share rather than a single star model.

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